Podcast ¦ CX Files: Traci Freeman – Connecting Africa For Global Business Services

Key Take Aways

1. Africa presents significant untapped potential as a global BPO, GBS, and IT services destination due to its youthful population and rapid digital adoption.
2. The continent’s demographic advantage includes over 60% of the population under 25, offering a substantial, digitally savvy workforce aligned with client demands.
3. Pan-African initiatives, such as the Africa Federation of GBS associations, aim to coordinate regional efforts to promote Africa’s BPO industry and manage perceptions internationally.
4. Cross-border collaboration among African countries is key; sharing best practices, opportunities, and resources objectives to accelerate regional development.
5. The federation emphasises perception management to enhance Africa’s reputation as a quality offshoring location, moving beyond outdated notions associated with wildlife and poverty tourism.
6. Access to high-quality infrastructure and a growing vendor ecosystem across nations like Kenya, Ghana, Nigeria, Egypt, and South Africa underpins the continent’s industry growth.
7. Recognising Africa as a high-value rather than low-cost destination is central to establishing sustainable, premium BPO offers.
8. Targeted regional marketing efforts and showcasing successful case studies are essential for shifting global perceptions and positioning Africa as an established, strategic destination.
9. The continent’s infrastructure has leapfrogged in some areas, such as fibre connectivity, enabling rapid digital engagement and service delivery.
10. Growth is supported by global market forces including Covid-19 exposure, financial shifts, and multinational mergers, which now see African locations as increasingly viable alternatives.
11. The federation’s long-term strategy involves research dissemination, hosting global events, and fostering industry standards to grow Africa’s BPO ecosystem.
12. Collaboration with local industry, government bodies, and private enterprises is vital for building scalable, sustainable offshoring hubs across diverse African markets.

Key Statistics

• Africa currently services approximately 2.8% of the global offshoring and outsourcing market.
• The continent is projected to have 1.2 billion people by the end of the year.
• Around 700 million active mobile phones are on African networks.
• The population under 25 years old accounts for more than 60% of Africa’s total demographic profile.

Key Discussion Points

• The importance of regional coordination and building a cohesive Pan-African value proposition for attractive offshoring destinations.
• How perception management is critical to reposition Africa as a high-value, reliable source for BPO and tech-enabled services.
• The role of government, industry associations, and private sector partnerships in shaping Africa’s BPO landscape.
• Opportunities stemming from Africa’s youthful, digitally native workforce and rapid infrastructure expansion.
• Strategies to overcome competitive challenges and prevent a ‘dog eat dog’ mentality among countries and companies.
• The impact of Covid-19 in accelerating Africa’s exposure as a capable and scalable offshoring hub.
• The perception of Africa as a low-cost destination versus its real value as a high-quality, cost-effective partner.
• The importance of sharing best practices and case studies to strengthen confidence among international clients and investors.
• The need for a long-term, collaborative approach involving research, events, and industry standards development.
• The continent’s increasing infrastructure investments, including flagship digital spaces in cities like Tartu (Kenya) and others across South Africa, Ghana, and beyond.
• The role of targeted perception campaigns to move beyond stereotypical imagery associated with African nations.
• The federation’s plans for future research, global engagement activities, and industry governance to foster sustainable growth.

Podcast Description

This podcast explores the strategic evolution of Africa as a key player in the global BPO, GBS, and tech-enabled services industries. Featuring insights from industry experts, including Tracy Freeman, it discusses regional initiatives, demographic advantages, infrastructure developments, and perception management strategies aimed at positioning Africa as a high-value, competitive destination. The discussion sheds light on collaborative efforts to promote industry growth, address challenges, and unlock opportunities for multinational organisations seeking scalable and innovative offshoring solutions across the continent.